The container charter market is closing 2025 on a decisively bullish footing, marking what is widely regarded as the strongest year outside the extraordinary post-COVID cargo surge. Demand has remained consistently robust across all vessel sizes, with charter rates holding at elevated levels and showing little indication of softening as the year draws to a close.
2025 the strongest year outside of COVID!
Unlike the typical seasonal slowdown often seen toward year-end, market momentum has carried through the second half of 2025. This sustained strength underscores the depth of charter demand and reflects a market that has proven notably resilient under pressure.
That resilience is particularly striking given the challenging global backdrop. Throughout the year, the charter market has had to absorb the impact of US tariffs, rising port fees, geopolitical tensions in the Middle East, the ongoing war in Ukraine, declining freight rates, and a steady flow of newbuilding deliveries. Despite these headwinds, charter fundamentals remained firm.
A critical supporting factor has been the continued diversion of vessels around the Cape of Good Hope. Longer sailing distances between Asia and the Atlantic basin have absorbed significant capacity, keeping vessels employed that might otherwise have contributed to surplus tonnage. These extended voyages have played a central role in tightening supply across the market.
Cargo demand has also exceeded expectations. Volumes on North–South routes and regional trades proved stronger than anticipated, further mitigating overcapacity risks and reinforcing demand for chartered tonnage. This breadth of cargo growth helped sustain utilization even as global freight rates softened.
As a result, tonnage availability remained exceptionally tight throughout the year. Unemployed container vessels were virtually nonexistent, with commercially idle tonnage hovering at record lows. This scarcity of open ships has been a key driver in maintaining firm charter rates across segments.
Looking ahead, market dynamics are expected to shift in 2026 with a broader return of container traffic through the Suez Canal. In the short term, any disruption to this transition could temporarily bolster charter demand. Over the longer term, however, shorter sailing distances combined with approximately 1.4 million TEU of scheduled new deliveries may push the market toward oversupply.
Absent another year of strong cargo growth, both freight and charter rates could come under sustained pressure. Nevertheless, 2025 will be remembered as an exceptional year for the container charter market—one that demonstrated remarkable strength, adaptability, and resilience in the face of global uncertainty.
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Source: Alphaliner
